LSE:0JQR

Stock Analysis Report

Executive Summary

KeyCorp operates as the holding company for KeyBank National Association that provides various retail and commercial banking services in the United States.

Rewards

Trading at 54.6% below its fair value

Earnings are forecast to grow 7.16% per year

Pays a high and reliable dividend of 4.43%

Risk Analysis

No risks detected for 0JQR from our risk checks.


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has KeyCorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 0JQR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.4%

0JQR

-8.5%

GB Banks

-8.6%

GB Market


1 Year Return

17.2%

0JQR

-14.3%

GB Banks

-1.3%

GB Market

Return vs Industry: 0JQR exceeded the UK Banks industry which returned -14.3% over the past year.

Return vs Market: 0JQR exceeded the UK Market which returned -1.3% over the past year.


Shareholder returns

0JQRIndustryMarket
7 Day3.4%-8.5%-8.6%
30 Day8.3%-9.4%-8.4%
90 Day5.9%-11.1%-5.3%
1 Year22.2%17.2%-8.5%-14.3%4.0%-1.3%
3 Yearn/a-13.2%-24.5%7.6%-6.1%
5 Yearn/a-10.1%-27.8%23.4%-4.8%

Price Volatility Vs. Market

How volatile is KeyCorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is KeyCorp undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0JQR ($20.41) is trading below our estimate of fair value ($44.99)

Significantly Below Fair Value: 0JQR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0JQR is poor value based on its PE Ratio (10.3x) compared to the Banks industry average (8.6x).

PE vs Market: 0JQR is good value based on its PE Ratio (10.3x) compared to the UK market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: 0JQR is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: 0JQR is overvalued based on its PB Ratio (1.1x) compared to the GB Banks industry average (0.7x).


Next Steps

Future Growth

How is KeyCorp forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

7.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0JQR's forecast earnings growth (7.2% per year) is above the savings rate (0.5%).

Earnings vs Market: 0JQR's earnings (7.2% per year) are forecast to grow slower than the UK market (13.2% per year).

High Growth Earnings: 0JQR's earnings are forecast to grow, but not significantly.

Revenue vs Market: 0JQR's revenue (5.9% per year) is forecast to grow faster than the UK market (3.8% per year).

High Growth Revenue: 0JQR's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0JQR's Return on Equity is forecast to be low in 3 years time (12.7%).


Next Steps

Past Performance

How has KeyCorp performed over the past 5 years?

17.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0JQR has high quality earnings.

Growing Profit Margin: 0JQR's current net profit margins (27.2%) are lower than last year (29%).


Past Earnings Growth Analysis

Earnings Trend: 0JQR's earnings have grown by 17.6% per year over the past 5 years.

Accelerating Growth: 0JQR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 0JQR had negative earnings growth (-10.2%) over the past year, making it difficult to compare to the Banks industry average (29.6%).


Return on Equity

High ROE: 0JQR's Return on Equity (10%) is considered low.


Next Steps

Financial Health

How is KeyCorp's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 0JQR has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0JQR's debt is not covered by short term assets (assets are 0.7x debt).


Financial Institutions Analysis

Asset Level: 0JQR's level of assets compared to its equity is low.

Allowance for Bad Loans: 0JQR has a sufficient allowance for bad loans.

Low Risk Liabilities: 0JQR's liabilities are made up of primarily low risk sources of funding.

Loan Level: 0JQR has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0JQR's loans are broadly funded by customer deposits.

Level of Bad Loans: 0JQR has an appropriate level of bad loans (0.71%)


Next Steps

Dividend

What is KeyCorp's current dividend yield, its reliability and sustainability?

4.52%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 29 2020Ex Dividend DateMar 02 2020Dividend Pay DateMar 13 202011 days from Ex DividendBuy in the next 2 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: 0JQR's dividend (4.43%) is higher than the bottom 25% of dividend payers in the UK market (1.94%).

High Dividend: 0JQR's dividend (4.43%) is low compared to the top 25% of dividend payers in the UK market (5.4%).


Stability and Growth of Payments

Stable Dividend: 0JQR's dividends per share have been stable in the past 10 years.

Growing Dividend: 0JQR's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.7%), 0JQR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0JQR's dividends in 3 years are forecast to be well covered by earnings (40.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average management tenure


CEO

Beth Mooney (64yo)

8.8yrs

Tenure

US$9,064,470

Compensation

Ms. Beth E. Mooney serves as Director at Ford Motor Company since July 10, 2019. Ms. Mooney has been the Chairman and Chief Executive Officer of KeyCorp since May 1, 2011 and serves as its President. Ms. M ...


CEO Compensation Analysis

Compensation vs Market: Beth's total compensation ($USD9.06M) is above average for companies of similar size in the UK market ($USD4.65M).

Compensation vs Earnings: Beth's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Beth Mooney
Chairman8.8yrsUS$9.06m0.14% $22.8m
Christopher Gorman
President0.4yrsUS$5.06m0.052% $8.4m
Donald Kimble
CFO & Chief Administrative Officer6.7yrsUS$3.47m0.038% $6.1m
Andrew Paine
Executive VP & President of Key Institutional Bank3.5yrsUS$3.97m0.020% $3.2m
Mark Midkiff
Chief Risk Officer & Executive Officer2.1yrsUS$3.32m0.0030% $491.1k
Douglas Schosser
Chief Accounting Officer & Executive Officer4.8yrsno data0.0047% $766.6k
Amy Brady
Chief Information Officer & Executive VP7.8yrsUS$3.33m0.014% $2.2m
Vernon Patterson
Executive Vice President of Investor Relations23.1yrsno datano data
Craig Beazer
General Counsel0.08yrsno data0.00015% $24.3k
Susan Donlan
Chief Communications Officer0yrsno datano data

4.8yrs

Average Tenure

54yo

Average Age

Experienced Management: 0JQR's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Beth Mooney
Chairman8.8yrsUS$9.06m0.14% $22.8m
Christopher Gorman
President0.4yrsUS$5.06m0.052% $8.4m
Ruth Ann Gillis
Independent Director10.3yrsUS$210.00k0.012% $1.9m
Alexander Cutler
Independent Lead Director0yrsUS$250.00k0.020% $3.2m
Charles Cooley
Independent Director8.3yrsUS$230.00k0.0026% $414.9k
William Gisel
Independent Director8.3yrsUS$215.00k0.0018% $296.6k
Kristen Manos
Independent Director10.8yrsUS$210.00k0.012% $2.0m
H. Dallas
Independent Director14.8yrsUS$210.00k0.011% $1.7m
Elizabeth Gile
Independent Director9.9yrsUS$230.00k0.0034% $547.8k
Barbara Snyder
Independent Director9.6yrsUS$200.00k0.0015% $248.0k

9.6yrs

Average Tenure

63.5yo

Average Age

Experienced Board: 0JQR's board of directors are considered experienced (9.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 0JQR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

KeyCorp's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: KeyCorp
  • Ticker: 0JQR
  • Exchange: LSE
  • Founded: 1849
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$16.207b
  • Shares outstanding: 969.89m
  • Website: https://www.key.com

Number of Employees


Location

  • KeyCorp
  • 127 Public Square
  • Cleveland
  • Ohio
  • 44114
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KEYNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1980
KEYDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1980
0JQRLSE (London Stock Exchange)YesCommon SharesGBUSDJan 1980
KEY1 *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJan 1980
KEYETLX (Eurotlx)YesCommon SharesITEURJan 1980
KEY.PRINYSE (New York Stock Exchange)DEP SHS 1/40 EUSUSDDec 2016
KEY.PRJNYSE (New York Stock Exchange)DEP SHS PFD FUSUSDJul 2018
KEY.PRKNYSE (New York Stock Exchange)DP SHS PFD GUSUSDApr 2019
K1EY34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 2019

Biography

KeyCorp operates as the holding company for KeyBank National Association that provides various retail and commercial banking services in the United States. The company's Key Community Bank segment offers various deposit and investment products, personal finance services, residential mortgages, home equity loans, credit cards, and installment loans. It also purchases retail auto-sales contracts through a network of auto dealership; offers financial, estate and retirement planning, asset management, and trust services, as well as portfolio management, life insurance, charitable giving, and related services for high-net-worth clients. In addition, this segment provides deposits, investment and credit products, and business advisory services to small businesses; and commercial lending, cash management, equipment leasing, and investment products, as well as employee benefit programs, succession planning, capital market access, derivatives, and foreign exchange services to mid-sized businesses. Its Key Corporate Bank segment offers a suite of banking and capital market products, such as syndicated finance, debt and equity capital market products, commercial payments, equipment finance, commercial mortgage banking, derivatives, foreign exchange, financial advisory, and public finance, as well as commercial mortgage loans for middle market clients comprising consumer, energy, healthcare, industrial, public, real estate, and technology sectors. The company also offers securities underwriting, investment banking, and brokerage services. As of December 31, 2018, it offered its products and services through 1,159 retail banking branches and 1,505 automated teller machines in 15 states, as well as additional offices, online and mobile banking capabilities, and a telephone banking call center. KeyCorp was founded in 1849 and is headquartered in Cleveland, Ohio. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/29 00:05
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.